Governor of the Central Bank of Nigeria CBN Godwin Emefiele, Inspector-General of Police IGP Usman Alkali Baba and the Director-General Department of State Services DSS Magaji Bichi are invited to appear before the House of Representatives Ad-hoc Committee on Petroleum subsidy unfailingly on Wednesday August 31, 2022.

Chairman of the House probe panel Hon. Almustapha Aliyu announced this at the ongoing investigation into trillions naira payment of subsidy by the federal government of Nigeria to government agencies and oil marketers in Nigeria.

The House panel is investigating key Ministries, Departments and Agencies MDAs of the government as well as oil marketing companies on the Direct Sale and Direct Purchase DSDS agreement entered into by key players on this issue

In a motion moved and adopted by the House, the Ad-hoc Committee was constituted to investigate why among other things the Nigeria National Petroleum Corporation NNPC’s purchase of crude oil at the international market stood at 445,000 barells per day in order for the the agency to provide oil products locally.

The Ad-hoc Committee is also worried that why the installed capacity of Nigeria stood at 445,000 per day, the capacity utilisation began to nosedive and eventually fell to zero due to ineffective and alleged corruption by critical stakeholders.

It noted that due to the decline in the production capacity of the refineries, NNPC found it more convenient to export domestic oil in exchange for petroleum products on batter basis described as Direct Sale and Direct Purchase DSDS agreement.

The lawmkers are also petrubed that the component costs in the petroleum products subsidy value chain claimed by the NNPC is highly over bloated while the transfer pump price per litre used by the NNPC in relation to PPMC is underquoted as N123-N128 instead of N162-N128 and this fraudulent under reporting translates into N70bn a month

The House Committee is also worried that that the subsidy regime has been unscrupulously used by the NNPC and other critical stakeholders to subvert the nation’s crude oil revenue to the tune of over $10 billion dollars with a record showing that as at 2021 over $7 billion in over 120 million barrels have been so diverted.

The committee members are further at loss that there exists evidence that subsidy amounts are being duplicated thus subsidy is charged against petroleum books of NNPC as well as against crude oil revenue in the books of NAPIMS to the tune of N2 trillion.

The probe panel in the excercise of this mandate had earlier invited the Chief Executive Officers CEOs of 43 oil marketing companies to appear before it unfailingly.

One of the companies Master Energy Resources Limited that appeared before the panel on Tuesday told the panel that the company only participated in the Direct Sales and Direct Purchase DSDS and the subsidy regime

The company however denied that it was involved in the crude oil and refined products exchange transaction otherwise called the swap deal by the oil sector players.

The CBN Governor, IGP and the DSS DG are billed to appear before the panel on Wednesday August 31 2022 unfailingly at 11.am at Hall 0.34 House wing National Assembly Complex.

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